Friday, May 10, 2013

Small Cap stocks - attractive. Big Cap almost fully valued

A very short entry. Big cap is fully valued selling slightly above last 10 years average around 15X, it's now selling for 16X.

Many small cap stocks less than 6-8 times are worth putting in some money for tactical play. The retail investors are taking the baits. The registration for broker briefing are full. The demand is so strong so much so that it was fully took up within days. Upswing can be violent. Those have still holding, hang on to the gains.

There is one name that I like ---- SUCCESS.

Koon Yew Yin and iCapital hold this stock.


messi said...

hi, i had invested in SUCCESS since 2010 and dump it last year. Similar with you, I see potential in SUCCESS with sales and profits growth since listing. However, based on my research, there is problem with its Acc Receivables! Keep growing but cash not in. Buyers beware :)

messi said...

same goes for its borrowings; up from 50mn in 2011 to 82.7mn in 2012. I may be wrong, but lets check the facts.
-penang lang :)

Turtleinvestor said...

They invested in plant expansion.

panaceaasia said...

I was at the launch of a new electrical product. I was chatting with a distributor of industrial lighting products in Malaysia & Indonesia.

We started talking about Success. He mentioned he knows the company and it's major shareholder, a Mr Tan, well. He is of the view that the products are selling well in China and surprise Kenya. The industrial lighting products are more expensive than its competitors but customers are willing to pay a premium for quality. The gross profits margins are high at about 23%.

panaceaasia said...

Success has reported steady earnings growth of about 15% over the past 4 years. It should achieve net EPS of 20sen this year. PER is 6x.

It is trading at a steep discount to NTA. Mr Tan should take the company private at RM1.40-1.50.

cheeheng said...

hi turtleinvestor888

I'm looking to buy into SUCCESS.May I know where did u find out Koon Yew Yin & iCapital holding this stock. I search Bursa website but could not find the information.

anbz said...

novamsc TP 60 cents!!!
capital repayment+takeover...big accumulation done for years already!!
Net profit 1000%